Disappeared News

Friday, March 15, 2013

Hawaiian Electric (HECO) has just posted the following notice on their web
site:

Invitation for Low Cost Renewable Energy Projects on Oahu Through
Request for Waiver from Competitive Bidding

Hawaiian Electric Company (Hawaiian Electric) seeks to lower the
cost of electricity for its customers in the near term with qualified renewable
energy projects on Oahu that can be quickly placed into service at a low cost
per kilowatt-hour. To that end, Hawaiian
Electric will consider requesting a waiver from the Hawaii Public Utility
Commission (PUC) Competitive Bidding Framework for projects that meet these
goals.

AT THE SAME TIME

HECO/HECO are proposing a new and improved HELCO-Aina
Koa Pono (AKP) Biodiesel Contract.

In 2011 HECO/HELCO submitted a proposed contract with
AKP to state regulators. The contract would have given AKP an estimated $250 million
surplus over 20 years above and beyond the existing price of electricity. HECO
and HELCO ratepayers would have paid for the surplus. That contract was
rejected by regulators.

In 2012 HECO/HELCO submitted a revised proposed
contract to regulators. The new price and the surplus that would be given to
AKP is allegedly lower but is permanently
secret.

The current 2013 Hawaii Legislature introduced HB 1405
which would have require disclosure of prices after the Public Utilities Commission
approves any contract.

HECO testified: "Hawaiian Electric appreciates
the intent of H.B. 1405, but offers that this bill is unnecessary."

The bill has been gutted.

If it gutted version passes and the AKP contract is
approved, then the surplus that AKP gets
from ratepayers will be confidential.

Just talked to a solar PV installer who told me 9 out of 10 projects are being rejected by MECO because they say they have too much renewable energy. Seems like they love the big expensive renewable projects where they can pass the expense on to the ratepayer and skim off a profit -- but when the ratepayer wants to lower their bill by installing renewable, no, no can't absorb any more renewable all of a sudden.

The AKP deal is a clear demonstration of how money talk at the legislature. Here we have a group of well connected individuals (whose members used to include the DBEDT chief)that have proposed to build a power plant using untested technology with an unknown fuel source using venture capital to make a product with a poor return on actual energy invested against community wishes and paid for by people who do not get the electricity at prices higher than ever seen before but held confidential by the monopoly power company.

Yet, this all seems like a good idea to legislators who willingly gut and replace to make sure the project is enabled.